Travel Boom in China
Travel boom as price war begins
By Pamela Pun
TRAVEL agencies in Guangdong province have slashed prices for
domestic tours for the coming Lunar New Year by up to 30 per cent.
The reductions come amid a brutal price war among travel companies in
the southern province to grab business during the week-long holiday.
The Lunar New Year break, or Spring Festival, which begins on
February 12, has traditionally been a ``golden week for tourism'' on the
mainland. China News Service said yesterday a series of promotions by
agencies had lured many people in the province into making travel
reservations.
This was despite the fact that Chinese would normally prefer to stay at
home for family reunions during the festival.
The Guangdong branch of China Travel Service - the mainland's
dominant travel group - has been promoting a luxury six-day package
tour of popular sights in the northwestern province of Shanxi for 2,800
yuan (HK$2,641) - 24 per cent less than normal. The tour takes in
Wutaishan mountain in Datong city, which houses the 1500-year-old
Yungang Buddhist rock caves, and Taiyuan, the provincial capital.
According to the Guangzhou-based Yangcheng Evening News, the
price cuts are partly the result of cheaper air fares arising from a bitter
tussle among domestic airlines to make up for a huge drop in business
last year following the September 11 terrorist attacks in the United
States.
A six-day tour of Dali and Lijiang in southwest Yunnan province now
costs 1,800 yuan - 500 yuan cheaper than normal - while a six-day tour
of the northeastern cities of Harbin, Jilin and Shenyang costs 4,800 yuan,
compared with 4,100 yuan previously.
Staff at China International Travel Service said they had also cut prices
for a three-day tour of the southeastern port city of Xiamen by 30 per
cent - from 1,900 yuan to 1,300 yuan. Travel firms would usually raise
tour prices by between 30 and 50 per cent during the Lunar New Year
in the past, making it almost unaffordable for most customers.
The mainland government has introduced various initiatives in recent
years to stimulate the economy. Starting from October 1, 1999 - the
country's 50th National Day - the Central Government has launched
three week-long holiday breaks to mark National Day, Lunar New Year
and May Day. During the last May Day holidays, more than 70 million
people travelled around the country, spending an average 400 yuan each,
official data showed.
21 January 2002 / 02:19 AM